<p>Are you looking to earn rewards on your LINK? If so, Chainlink staking allows you to earn yield on your LINK tokens, while helping secure the network.</p><p>In this guide we’ll share the best way to stake LINK and earn rewards for doing so.</p><h2>What is Chainlink staking?</h2><p>The first version of Chainlink Staking “v0.1” launched in December 2022, allowing users to stake “LINK”, which is the native token of the Chainlink network.</p><p>Chainlink is a decentralized oracle network that enables any blockchain to securely access off-chain data and resources. By staking LINK users earn staking rewards for contributing to the cryptoeconomic security of Chainklink’s oracle services.</p><h2>How does Chainlink staking work?</h2><p>Participants in Chainlink Staking v0.1 have their staked LINK tokens held in smart contracts. The staked LINK backs performance guarantees around oracle services, helping the Chainlink ecosystem expand to secure greater amounts of value over time.<br>How to stake Chainlink: Step-by-step guide to LINK staking<br>The below guide outlines how to stake Chainlink in v0.01 of their staking release.</p><p>For the best security and control over your funds, we recommend using a Ledger Hardware Wallet. To delegate your tokens, you should ensure they are stored on your Ledger or Metamask, and then follow these steps below:</p><ul><li>Step 1: Go to the <a href="https://staking.chain.link/">Chainlink Staking Dashboard</a> and connect your wallet.</li><li>Step 2: Enter the amount of LINK you want to stake and press ‘Stake’.</li><li>Step 3: Accept the T&amp;C’s and sign the transaction.</li></ul><h2>How do I choose a Chainlink validator?</h2><p>Due to the security parameters set by Chainlink Staking v0.1, any LINK staked by Node Operators and Community Stakers, along with their earned rewards, will be locked in a smart contract until a future Staking release.</p><p>Once staked, your LINK tokens are automatically delegated across all active staking node operators equally. The process, known as "Auto-Delegation," ensures node operators begin on a level playing field until a more advanced reputation system is introduced in a future Staking release.</p><p>As a result, you do not need to choose a node operator, since it is done automatically.</p><h2>How are Chainlink staking rewards generated?</h2><p>The below outlines the staking rewards earned on LINK through the network emissions in Chainlink Staking v0.1.</p><h3>Rewards for Chainlink Node Operators</h3><p>Node Operator Stakers can earn an effective annualized reward rate of ~7% in LINK per year. This breaks down as a baseline reward rate of 5% per year in LINK against their committed stake, along with additional rewards from the 5% delegation fee taken from Community Staker rewards.</p><h3>Rewards for Community Stakers</h3><p>Community stakers can expect an effective annualized reward rate of 4.75% in LINK for staking to the network. This includes a baseline reward rate of 5%, with a 5% portion of community stakers to be paid out to Node Operators as delegation fees.</p><h3>Alerting Rewards</h3><p>As part of v0.1, if there hasn't been a new oracle report on ETH/USD for over three hours, stakers on the Ethereum mainnet can sound the alarm. If a Node Operator Staker issues a valid alert during the Priority Period, they can earn 7,000 LINK. After this period, any staker who raises a valid alert can earn 20% of their staked LINK, up to a maximum of 7,000 LINK.</p><h2>Do I need to maintain my LINK staking in any way?</h2><p>Participants that stake LINK in Chainlink Staking v0.1 will have their tokens locked until the launch of Chainlink Staking v0.2, which is expected to be in Q4 2023.</p><h2>What are the risks to staking LINK</h2><p>Whilst we want to ensure staking is as safe and transparent as possible, there are still things to consider regarding whether a specific staking option is right for you.</p><h3>Slashing risk</h3><p>During v0.1, Node Operator Stakers won't lose their initial stake. But if they have excessive downtime and a valid alert is raised, they may lose up to three months of staking rewards when serving the ETH/USD Data Feed on Ethereum.</p><p>Staked LINK any accrued rewards from Community Stakers are not subject to penalties or slashing in Staking v0.1. Stake slashing is planned for the launch of v.02.</p><p>Learn more about the Chainlink staking v.02 upgrade and launch details.</p><h3>Lock up risk</h3><p>Node Operators and Community Stakers that stake in Chainlink Staking v0.1 will initially have their staked LINK locked in a smart contract, along with any accumulated rewards.</p><p>Participants of v0.1 staking will have the opportunity to withdraw their LINK tokens after the launch of v.02, which is expected to be in Q4 2023. Please take note of this lockup before you decide to stake.</p><p>Learn more about the <a href="https://blog.chain.link/chainlink-staking-v0-2-overview/">Chainlink staking v.02 upgrade and launch details</a>.</p><p>Please note that this is not an exhaustive list of all the risks related to staking.</p><h2>What consensus algorithm does Chainlink use?</h2><p>Chainlink employs a robust consensus mechanism known as "secure aggregated price feeds" to ensure the accuracy and reliability of data supplied by its oracles. Their mechanism enables multiple oracles to contribute price information for a given contract, which is subsequently pooled and verified by a decentralized network of nodes. This process ensures data is correct and tamper-proof. Any malicious attacks on the network to alter the data would require control over a significant portion of the network.</p><h2>Where to store LINK?</h2><p>Looking for a crypto wallet? <a href="https://onelink.to/exodus-stakingreward">Exodus Wallet</a> has an intuitive interface, a built-in exchange feature and supports over 200+ assets. Manage your cryptocurrency portfolio securely and with ease using Exodus Wallet! Visit their website to <a href="https://onelink.to/exodus-stakingreward">learn more and download today</a>.</p>

Everything You Need to Know About Chainlink Staking